JPMorgan Sets New Overweight Rating, $74 Target On NICE-Systems
On May 18, Nice-Systems Ltd (ADR) (NASDAQ: NICE) announced its plans to acquire Incontact Inc (NASDAQ: SAAS) for $14 a share. The latter is a cloud contact center software company that recently received mixed reactions from investors and experts.
JPMorgan's Paul Coster resumed NICE-Systems at Overweight with a December 2017 price target of $74. The rating came after a period of restriction where JPMorgan last rated NICE-Systems at Overweight with a December 2016 price target of $70.
Over the restriction period, Coster said NICE-Systems' execution "has been excellent, and we expect the company to quickly integrate inContact upon deal closing, expected by year-end."
Aligning With A Private Branch Exchange Vendor
The analyst was generally positive on NICE-Systems' cooperation with a single private Branch Exchange Vendor (PBX), despite admitting there could be potential downside from the deal. "Although there could be potential downside from NICE now being directly aligned with a single PBX vendor instead of being agnostic, we believe NICE will be able to offer a more holistic, versatile solution, especially in the enterprise mid-market, which could provide upside," stated Coster.
At time of writing, NICE-Systems traded at $62.49, up 3.32 percent shortly after Wednesday's opening bell. However, inContact was flat, up a penny from Wednesday's opening price of $13.85.
Latest Ratings for NICE
|Feb 2017||Goldman Sachs||Initiates Coverage On||Neutral|
|Jan 2017||Imperial Capital||Downgrades||Outperform||In-Line|
|Jun 2016||JP Morgan||Assumes||Overweight|
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